Bitcoin Surges 5% to $105,000, Eyes $112,000 Target

Bitcoin has resumed its upward trajectory, surpassing the $105,000 mark during early trading on Tuesday. This surge has positioned the cryptocurrency to target the key resistance zone of $106,500, with potential for further gains if the momentum persists.

According to data from Kraken, the BTC/USD pair breached short-term resistance levels at $103,200 and $103,500, propelling it towards the $106,000 mark. This rally gained traction after Bitcoin reclaimed critical support zones, indicating a strong bullish intent in the price action.

The hourly chart reveals that BTC is currently trading above $105,000 and the 100-hourly simple moving average (SMA). A bullish trend line is forming near the $106,000 level, providing additional support and suggesting further upside potential. The price has already surpassed the 76.4% Fibonacci retracement level from the previous swing high at $106,470 to the swing low of $98,276, paving the way for BTC to test its next critical resistance near $106,500.

If this resistance level is convincingly breached, Bitcoin could surge towards $107,200 and $108,500—the latter being the 1.236 Fib extension level. A sustained close above $108,500 might push the price toward the psychological barrier at $110,000, and potentially up to $112,000 in the short term.

On the downside, immediate support lies at $106,000, with stronger support at $105,500. If Bitcoin fails to maintain its current gains, a dip below $105,000 could pull the price down to $104,200, and possibly $103,500. Deeper corrections could test the critical floor at $102,000, which previously acted as a strong pivot zone during last week’s volatility.

The MACD on the hourly chart is now showing signs of gaining pace in the bullish zone, while the RSI (Relative Strength Index) for BTC/USD remains above 50—both indicators pointing to continued buyer dominance. This rally follows a relief bounce that began after President Donald Trump confirmed a ceasefire, easing geopolitical tensions and reducing global risk-off sentiment. With broader financial markets stabilizing and risk appetite returning, Bitcoin may continue to benefit from safe-haven flows.

With bullish sentiment improving and price structure favoring upward continuation, traders are watching for a clean break above $106,500. If buyers maintain pressure and the macro backdrop remains stable, the market could be preparing for a run toward Bitcoin’s all-time high territory in the coming weeks. However, failure to convincingly clear the $106.5K resistance could bring consolidation or a retracement toward the lower support zones.

Bitcoin has surged past the $105,000 mark, igniting optimism among bullish investors who are now eyeing a potential push toward the $112,000 threshold. This significant milestone comes after a period of volatility, during which Bitcoin tested support levels around $96,000 to $95,000. The cryptocurrency's recent performance has been characterized by a bull flag/pennant pattern, which has historically indicated a breakout to higher levels. According to the analyst's forecast, Bitcoin could fluctuate between $94,000 and $114,000 in the near term, with the potential to dip close to $92,000 before rebounding toward new highs. The current bullish sentiment is driven by a combination of factors, including increased institutional interest and positive regulatory developments. However, investors remain cautious, as the cryptocurrency market is known for its volatility and unpredictability. The next few weeks will be crucial in determining whether Bitcoin can sustain its upward momentum and reach the $112,000 mark.